Canadians To Invest in Blockchain Through ETF
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Sept. 21, 2018
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While the U.S. is deciding on the issue with the launch of bitcoin-ETF, its Northern neighbor, Canada, is pleased with the news. Coincapital, a division of the Bitcoin Stock Exchange of Coinsquare, launched two exchange-traded funds (ETFs), Coincapital STOXX Blockchain Patents Innovation Index Fund (LDGR) and Coincapital STOXX B.R.AI.N (THNK), on the Canadian TSX Venture Exchange.

Blockchain ETF is an investment tool that uses DLT-companies' shares in the form of a basic asset. Such instruments are bought and sold on stock exchanges as part of trading sessions. This investment tool helps investors from different jurisdictions to acquire exchange-traded assets related to the blockchain industry. The investor does not violate the law, since the ETF registers with the regulator, but on the other hand, it can get a higher return due to the interest in the distributed ledger technology.

The tools will allow Canadian investors to gain access to companies working in the field of blockchain and other innovative technologies. Representatives of the company believe that Canadians know that innovative technologies such as blockchain change their way of life and work. At the same time, access to high-quality investments in this sector without deep knowledge can be quite difficult to obtain.

In fact, the company uses its knowledge of the distributed ledger technology to provide potential Canadian investors with a set of investment solutions that will help them invest in a new technology. This means that the residents of the country who are not experts in the field of blockchain, will be able to invest in this area. Both ETFs have already started trading on the TSX Venture Exchange.

Features of investment tools:

  • LDGR will allow investing in companies that focus on research and development in the field of the distributed ledger technology. Given the iSTOXX Yewno Developed Markets Blockchain index and the number of patent applications in the field of blockchain, the fund will select the most promising companies. The fund, based on its own AI algorithm, will track the iSTOXX Yewno Developed Markets Blockchain index. Given the index, the fund will choose the most promising companies. The main factor that will be taken into account when selecting companies is the number of patent applications in the field of blockchain. This, according to the idea of ​​developers, will most effectively identify innovators and prospective companies.
  • The second fund of THNK will provide investors with access to organizations dealing with AI, robotics, bio, and nanotechnologies. When selecting companies, ETF uses the index iSTOXX Developed Markets B.R.AI.N. It gets companies that receive 50% of the profits from the activities in the above areas.

It is worth noting that Coinsquare is Canada's leading crypto trading platform. Earlier, the exchange announced that by the end of 2018 will enter the market of the European Union. This will allow new customers to use its platform for the exchange of bitcoin, ethereum and other cryptocurrencies. Earlier this month, the firm also said it was going to launch a new exchange in the U.S. The company will pursue the goal of becoming a global financial institution of the 21st century. Representatives of the platform note that they are very carefully approaching the issues of international expansion, wishing to be confident that they will be able to offer the same high level of service and security in any other country.

In principle, Canada is friendly to the sphere of cryptocurrency and blockchain. According to the results of the survey, 85% of the population of Canada is aware of bitcoin and cryptocurrencies, while the number of Canadian residents who own bitcoins has almost doubled in a year - in Europe these figures, however, are higher.

Recall, the Bank of Canada last year thought about the possibility of issuing a national digital currency, saying that the Central Bank's issued cryptocurrency (CBDC) may be beneficial for Canada and the neighboring U.S. Analysts also believe that bitcoin-ETF, which is now undoubtedly located in the epicenter of the crypto agenda, can be launched first in Canada. They came to this conclusion because history shows that the regulator tends to resolve new index funds first in the neighborhood and then in the U.S. Particularly in Canada, Evolve Bitcoin ETF (BITS) is now waiting for an approval.

Canada Launches Bitcoin-Fund for Collective Investments

Blockchain ETF is an investment tool that uses DLT-companies' shares in the form of a basic asset. Such instruments are bought and sold on stock exchanges as part of trading sessions. This investment tool helps investors from different jurisdictions to acquire exchange-traded assets related to the blockchain industry. The investor does not violate the law, since the ETF registers with the regulator, but on the other hand, it can get a higher return due to the interest in the distributed ledger technology.

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